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Egypt, Hyundai sign new deal to manufacture and import metro trains
Hyundai Rotem will manufacture and supply 320 carriages and 40 trains.
Following an MoU signed in April last year, a tri-party deal has been signed between the Egyptian National Authority for Tunnels, South Korean Hyundai Rotem, and the National Egyptian Railway Industries Company (NERIC) to supply metro coaches to Cairo.
According to the Egyptian Ministry of Transportation, this $656 million project will help upgrade the metro infrastructure in Egypt and localize the industry. As per the agreement, Hyundai Rotem will supply 320 new cars and 40 trains, which will be used in the city’s second and third metro lines.
Hyundai Rotem will be responsible for knowledge transfer and sharing its locomotive manufacturing technology with Egypt. The South Korean company will also set up a local manufacturing facility with the National Egyptian Railway Industries Company (NERIC) to help build a supply chain ecosystem and reduce its dependence on imported goods.
This facility will provide at least 30% of the supplies for the project. The two entities will be responsible for maintenance over the next eight years.
The Egyptian Prime Minister, Mostafa Madbouly, said that this contract signing is a pivotal step to implementing the directives of Egypt’s President, Abdelfattah El-Sisi, to localize heavy industries in Egypt as per the latest trends and in line with international standards.
Kamel Al-Wazir, Minister of Transport, said, “The contract will provide all the needs of the huge national projects implemented by the state in the field of subway projects and electrical traction, to provide the hard currency that the state used to import these trains and will also contribute to providing job opportunities for young people.”
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